Dan Roger, AWS Product Marketing
Agility & Cost Savings Achieving the ‘X-Factor’
AWS Customers Are Realizing Long Term Benefits
Saved $34M on SmartHub app
10’s of millions of $ saved with first 12
apps migrated to AWS
50%+ reduction in server costs
decreased IT operating costs
by 75%
In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS.
“We estimate that for every dollar spent on AWS, there is at least $3-4 NOT spent on traditional I/T” Baird Equity Research
Analysts have proven out the results
Pay For Infrastructure as you Need it, Not Up Front
On-Premises
Demand
Q1 Q2 Q3 Q4 Q1
wasted
capacity
lost customers,
ordered hardware
wasted
capacity
wasted
capacity
wasted
capacity
200k
300k
600k
Time
Capacity of resources
Actual demand
Traditional IT = Waste or Missed Opportunity
Demand
AWS
With AWS match resources to demand
Q1 Q2 Q3 Q4 Q1
200k
300k
600k
Demand
Time
AWS Gives you an Off Switch for IT
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Lo
ad
Hourly CPU Load
25% Savings
Day
Optimize by Time of Day
1 5 9 13 17 21 25 29 33 37 41 45 49
Web
Serv
ers
Weeks in a Year
50% Savings Weekly CPU Load
Optimize by Annual Business Cycles
The cost of innovation is high with Traditional IT
$250K budget
Start Over
Fund 1 Idea 6 Months Fail
Experiment Often & Adapt Quickly with AWS
• Cost of failure falls dramatically
• Return on (small incremental)
Investments is high
• More risk taking, more innovation
• More iteration, faster innovation
On-Demand
Pay for compute
capacity by the hour
with no long-term
commitments
For spiky workloads,
or to define needs
Reserved
Make a low, one-time
payment and receive
a significant discount
on the hourly charge
For committed
utilization
Spot
Bid for unused
capacity, charged at a
Spot Price which
fluctuates based on
supply and demand
For time-insensitive or
transient workloads
Free Tier
Get Started on AWS
with free usage & no
commitment
For POCs and getting
started
AWS offers Many Pricing Options To Fit Workloads
Types of Reserved Instances
Reserve to save
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
1 2 3 4 5 6 7 8 9 10 11 12
On-Demand
Light
Medium
Heavy
1 Year Cost:
High Memory
Extra Large
Instance
Months
On-Demand vs. 1 Year RIs
1 Month
Breakeven
2 Months
Breakeven
51%-61%
savings
Save Even More
with 3 Year RIs
Upto 76%
Leverage a Portfolio of Reserved Instances
What are Spot Instances?
• Value to the customer
Pricing
• Up to 92% discount off of On-
Demand Instance
Elastic
• Potential to get capacity not
otherwise available
Minimum Commitment
• Only need to commit to 1 hour
• Tradeoff
Potential for interruption
Our Scale and Low-Margin Approach is Unique
We build IT at higher scale
than most any operator of
data centers in the world
We are comfortable running a high
volume, low margin business
We pass the savings along to
our customers in the form of
low prices and continuous
reductions
Comparing IT costs on-premises vs. cloud isn’t easy
AWS Includes Everything in the Price
Hardware
Vendor
Offering
Fixed Cost Factors One-time Upfront Monthly
AWS Co-lo On-Site AWS Co-lo On-Site
Server Hardware 0 $$$ $$ $$ 0 0
Network Hardware 0 $$ $$ 0 0 0
Hardware Maintenance 0 $$ $$ 0 0 0
Software OS 0 $$ $$ $ 0 0
Power and Cooling and Data Center Efficiency
0 0 $$ 0 0 $
Data Center/co-lo Space 0 $$ $$ 0 0 0
Personnel (Administration) 0 $$ $$ $ $$ $$$
Storage and Redundancy 0 $$ $$ $ 0 0
Bandwidth $ $$ $ $$ $ $
Resource Management Software 0 0 0 $$ $ 0
Total
Take all the fixed costs into consideration
Use our TCO Calculator to Compare Costs
Servers Think 3-5 year time frame
Use Heavy Utilization Reserved Instances
for apples to apples comparisons
HW maintenance starts at 10%
Don’t forget your VM maintenance costs
Storage
Network
Environment
Administration
Utilization rarely exceeds 60%
Three copies of your data in three datacenters
with Amazon S3
Less expensive at every tier
Servers
Storage
Network
Environment
Administration
Buying fixed ISP bandwidth means waste
Administration costs and hardware costs for your network
More bandwidth gets less expensive in AWS
Redundancy for free: AWS aggregates bandwidth from multiple Telco providers
Servers
Storage
Network
Environment
Administration
Rent, power, cooling, cabling – all that stuff
With colocation providers – you are buying
less than a full rack
Datacenters were built for last decade’s
equipment – prepare for upcharges
Servers
Storage
Network
Environment
Administration
Hardware requires specialty skillsets at premium rates
Lack of automation options = focus on provisioning resources rather than innovating
4X improvement in server to admin ratio going to AWS
Servers
Storage
Network
Environment
Administration
#1 Start with a use case or an application – compare apples to apples, capacity
utilization, networking, availability, peak to average, etc.
#2 Take all the costs into consideration
(Don’t forget administration, maintenance and redundancy costs)
#3 Use Updated Pricing (compute, storage and bandwidth)
Price cuts, Tiered Pricing and Volume Discounts
#4 Use variable capacity & reserved instances where they fit the business needs
#5 Intangible Costs – Take a closer look at what is built in with AWS – security,
elasticity, innovation, flexibility
When calculating TCO…
Cost Optimization Tips
Tip 1: Pay for what you use
© 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
Auto Scaling scales on demand or a schedule
© 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
• Review the amount of memory and CPU
• Select an instance that provides enough buffer to meet your requirements
• Only scale to a larger instance when needed
© 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
Tip 3:
© 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
Lever 3: © 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
Free Offering
– Goals
• Optimize for reducing cost
• Acceptable Delay Limits
– Implementation
• Use Spot, if delay then use On-Demand
• Maximum Spot Bid Price is less than On-Demand price
Premium Offering
© 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
Proactive Cost Optimization with Trusted Advisor
Getting the X Factor Matt Millar CEO
39
Online tap to clap in sync with show
Embeddable into broadcaster show website & twitter
Viral distribution via facebook and twitter
• 20 Million viewers
• Design goal 1,000,000 active viewers
– Over a 60 minute show. With acts on stage for 5
minute segments.
– Equivalent to 260bn requests/month
• But just on Saturday and Sunday nights
Source: http://www.google.com/adplanner/static/top1000/#
Where does
260 Billion
requests fit?
• Large numbers of servers for short periods of time
• Scale in seconds not hours
• Flexibility in choice
• Low cost
TV Traffic arrives fast
• Amazon Elastic Compute Cloud (Amazon EC2) instances for proxy, cache, web, write DB
• Amazon Relational Database Service (Amazon RDS) for our MySQL servers
• Amazon CloudFront for CDN distribution
• Amazon CloudWatch metrics (along with our own monitoring solution)
Summary: Achieving the IT X Factor
• Do a TCO comparison
• Don’t pay us more than you need to (RI, Autoscale)
• Optimize with Trusted Advisor
Thank you!